[Appendix, Budget of the United States Government, Fiscal Year 1998]
[Page 899-919]
VETERANS BENEFITS ADMINISTRATION
Federal Funds
General and special funds:
[Compensation and Pensions]
[For the payment of compensation benefits to or on behalf of
veterans as authorized by law (38 U.S.C. 107, chapters 11, 13, 51, 53,
55, and 61); pension benefits to or on behalf of veterans as authorized
by law (38 U.S.C. chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and
burial benefits, emergency and other officers' retirement pay, adjusted-
service credits and certificates, payment of premiums due on commercial
life insurance policies guaranteed under the provisions of Article IV of
the Soldiers' and Sailors' Civil Relief Act of 1940, as amended, and for
other benefits as authorized by law (38 U.S.C. 107, 1312, 1977, and
2106, chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540-548; 43 Stat.
122, 123; 45 Stat. 735; 76 Stat. 1198); $18,671,259,000, to remain
available until expended: Provided, That not to exceed $26,417,000 of
the amount appropriated shall be reimbursed to ``General operating
expenses'' and ``Medical care'' for necessary expenses in implementing
those provisions authorized in the Omnibus Budget Reconciliation Act of
1990, and in the Veterans' Benefits Act of 1992 (38 U.S.C. chapters 51,
53, and 55), the funding source for which is specifically provided as
the ``Compensation and pensions'' appropriation: Provided further, That
such sums as may be earned on an actual qualifying patient basis, shall
be reimbursed to ``Medical facilities revolving fund'' to augment the
funding of individual medical facilities for nursing home care provided
to pensioners as authorized by the Veterans' Benefits Act of 1992 (38
U.S.C. chapter 55).
For an additional amount for ``Compensation and Pensions'',
$100,000,000, to be made available upon enactment of this Act, to remain
available until expended.]
Activities formerly included in this account are proposed to be
financed by three separate appropriation accounts in 1998 and are
presented below in the ``Compensation'', ``Pensions'', and ``Burial
benefits and miscellaneous assistance'' accounts. Amounts for 1996,
1997, and 1998 are shown on a comparable basis. The following table
shows the distribution of the amounts (dollars in millions) appropriated
in 1996 and 1997 and requested in 1998.
1996 actual 1997 est. 1998 est.
Distribution of budget authority by
account:
Compensation...................... 15,415 16,163 16,438
Pensions.......................... 3,074 3,145 3,184
Burial benefits................... 114 117 119
Distribution of outlays by account:
Compensation...................... 14,222 16,160 16,436
Pensions.......................... 2,834 3,141 3,177
Burial benefits................... 114 117 119
<F-dash>
Compensation
For the payment of compensation benefits to or on behalf of veterans
and a pilot program for disability examinations as authorized by law,
$16,437,688,000, to remain available until expended, of which not to
exceed $2,083,000 shall be reimbursed to ``General operating expenses''
for necessary expenses as authorized by chapters 11, 13, 18, 51, 53, 55
and 61 of title 38, United States Code.
For the payment, after June 30 of the current fiscal year, of
compensation benefits to or on behalf of veterans as authorized by law,
for unanticipated costs incurred for the current fiscal year, such sums
as may be necessary. (38 U.S.C. 107, and chapters 11, 13, and 61.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0153-0-1-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Compensation:
Veterans:
00.02 World War I................... 3 2 2
00.03 World War II.................. 3,421 3,201 3,168
00.04 Korean conflict............... 1,160 1,128 1,166
00.05 Vietnam era................... 4,722 4,846 5,286
00.06 Peacetime service............. 2,479 2,534 2,773
00.07 Persian Gulf conflict......... 467 569 708
--------- --------- ----------
00.91 Total veterans.............. 12,252 12,280 13,103
Survivors:
01.04 World War I................... 63 52 46
01.05 World War II.................. 1,279 1,232 1,274
01.06 Korean conflict............... 382 374 393
01.07 Vietnam era................... 928 951 1,043
01.08 Peacetime service............. 452 432 442
01.09 Persian Gulf conflict......... 45 51 60
--------- --------- ----------
01.91 Total survivors............. 3,149 3,092 3,258
02.01 Clothing allowance.............. 37 36 38
--------- --------- ----------
02.93 Total compensation............ 15,437 15,409 16,399
Children:
03.02 Vietnam Era..................... 18
03.03 Ch 18 Voc Rehab................. 3
--------- --------- ----------
03.91 Total Children................ 21
09.01 Payment to general operating
expenses........................ 2 2 2
09.02 Medical Exam Pilot Program........ 8 16
--------- --------- ----------
09.91 Total other..................... 2 10 18
--------- --------- ----------
10.00 Total obligations (object class
42.0)......................... 15,440 15,418 16,438
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 33 8
22.00 New budget authority (gross)...... 15,415 15,410 16,438
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 15,448 15,418 16,438
23.95 New obligations................... -15,440 -15,418 -16,438
24.40 Unobligated balance available, end
of year: Uninvested balance..... 8
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 15,275 15,564 16,438
41.00 Transferred to other accounts..... -154
42.00 Transferred from other accounts... 140
--------- --------- ----------
43.00 Appropriation (total)........... 15,415 15,410 16,438
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 15,415 15,410 16,438
----------------------------------------------------------------------------
[[Page 900]]
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 13 1,232 1,243
73.10 New obligations................... 15,440 15,418 16,438
73.20 Total outlays (gross)............. -14,222 -15,407 -16,436
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 1,232 1,243 1,245
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 14,176 14,175 15,193
86.93 Outlays from current balances..... 46 1,232 1,243
--------- --------- ----------
87.00 Total outlays (gross)........... 14,222 15,407 16,436
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 15,415 15,410 16,438
90.00 Outlays........................... 14,222 15,407 16,436
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
1996 actual 1997 est. 1998 est.
Enacted/requested:
Budget Authority.................. 15,415 15,410 16,438
Outlays........................... 14,222 15,407 16,436
Supplemental proposal:
Budget Authority.................. 753
Outlays........................... 753
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 331
Outlays........................... 298
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -17
Outlays........................... -17
------------------------------------
Total:
Budget Authority.................. 15,415 16,163 16,752
Outlays........................... 14,222 16,160 16,717
====================================
This appropriation would provide for the payment of compensation
benefits to veterans and survivors. Compensation is paid to veterans for
disabilities incurred in or aggravated during active military service.
Dependency and Indemnity Compensation is paid to survivors of
servicepersons or veterans whose death occurred while on active duty or
as a result of service-connected disabilities. Compensation and
vocational rehabilitation is provided to the children of Vietnam
veterans who were born with the birth defect spina bifida.
The Secretary may pay a clothing allowance to each veteran who uses
a prescribed medication for a service-connected skin condition, or wears
a prosthetic or orthopedic appliance (including a wheelchair) which, in
the judgment of the Secretary, tends to damage or tear the clothing of
such veteran.
Caseload and cost tables shown below do not include proposed
legislation.
AVERAGE NUMBER OF COMPENSATION CASES AND PAYMENTS
1996 actual 1997 est. 1998 est.
Veterans:
Mexican border period............. 11 11 9
World War I....................... 483 330 230
World War II...................... 671,110 634,900 595,700
Korean conflict................... 188,427 184,700 180,700
Vietnam era....................... 709,079 719,659 729,461
Peacetime service................. 522,233 539,300 558,800
Persian Gulf conflict............. 151,764 184,600 217,200
------------------------------------
Total......................... 2,243,107 2,263,500 2,282,100
Average payment per case, per year $5,462 $5,692 $5,741
Total obligations (in
millions)................... $12,252 $12,883 $13,102
====================================
Children of Vietnam era veterans:
Children.......................... 2,000
Average payment per case, per year $9,219
Total obligations (in
millions)................... $18
Chapter 18 Vocational
rehabilitations:
Rehabilitations................... 860
Average payment per case, per year $3,095
Total obligations (in
millions)................... $3
Survivors:
Prior to Spanish-American War..... 1 1 1
Spanish-American War.............. 19 14 10
Mexican border period............. 2 2 2
World War I....................... 6,232 5,254 4,431
World War II...................... 124,731 122,057 119,530
Korean conflict................... 37,250 37,093 36,967
Vietnam era....................... 89,636 93,182 96,812
Peacetime service................. 44,766 43,677 42,620
Persian Gulf conflict............. 3,604 4,120 4,627
------------------------------------
Total......................... 306,241 305,400 305,000
Average payment per case, per year $10,286 10,609 10,683
Total obligations (in
millions)................... $3,150 3,240 3,258
====================================
Clothing allowance:
Number of veterans................ 73,102 73,700 74,300
Average payment per case, per year $503 518 518
Total obligations (in
millions)................... $37 $37 $38
====================================
<F-dash>
Compensation
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0153-2-1-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Compensation:
Veterans:
00.03 World War II.................. 63
00.04 Korean conflict............... 23
00.05 Vietnam era................... 106
00.06 Peacetime service............. 56
00.07 Persian Gulf conflict......... 14
--------- --------- ----------
00.91 Total veterans.............. 262
Survivors:
01.04 World War I................... 1
01.05 World War II.................. 27
01.06 Korean conflict............... 8
01.07 Vietnam era................... 22
01.08 Peacetime service............. 9
01.09 Persian Gulf conflict......... 1
--------- --------- ----------
01.91 Total survivors............. 68
02.01 Clothing allowance.............. 1
--------- --------- ----------
02.93 Total compensation............ 331
--------- --------- ----------
10.00 Total obligations (object class
42.0)......................... 331
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 331
23.95 New obligations................... -331
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 331
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation
73.10 New obligations................... 331
73.20 Total outlays (gross)............. -298
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 33
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 298
86.93 Outlays from current balances.....
--------- --------- ----------
87.00 Total outlays (gross)........... 298
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 331
90.00 Outlays........................... 298
---------------------------------------------------------------------------
Legislation will be proposed to provide a cost-of-living adjustment
(COLA) to all compensation beneficiaries including spouses and children.
This increase, effective December 1,
[[Page 901]]
1997, is expected to be 2.7 percent and cost $331 million in fiscal year
1998.
<F-dash>
Compensation
(Legislative proposal, subject to PAYGO)
----------------------------------------------------------------------------
Identification code 36-0153-4-1-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Compensation:
Veterans:
00.03 COLA Round down............... -17
--------- --------- ----------
02.93 Total compensation............ -17
--------- --------- ----------
10.00 Total obligations (object class
42.0)......................... -17
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -17
23.95 New obligations................... 17
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... -17
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... -17
73.20 Total outlays (gross)............. 17
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority -17
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -17
90.00 Outlays........................... -17
---------------------------------------------------------------------------
This legislative proposal would provide for a permanent round down
of the annual COLA increase.
Legislation will also be proposed to deny service connection for
disability or death due to an injury or disease resulting from tobacco
use while on active duty which becomes manifest after service discharge
and beyond any applicable presumptive period.
<F-dash>
Pensions
For the payment of pension benefits to or on behalf of veterans as
authorized by law, $3,178,055,000, to remain available until expended;
of which not to exceed $24,297,000 shall be reimbursed to ``General
operating expenses'' and ``Medical care'' for necessary expenses as
authorized by chapters 51, 53, 55, and 61 of title 38, United States
Code; and of which such sums as may be earned on an actual qualifying
patient basis, shall be reimbursed to ``Medical facilities revolving
fund'' to augment the funding of individual medical facilities for
nursing home care provided to pensioners as authorized by chapter 55.
For the payment, after June 30 of the current fiscal year, of
pension benefits to or on behalf of veterans as authorized by law, for
unanticipated costs incurred for the current fiscal year, such sums as
may be necessary. (38 U.S.C. chapters 15 and 61.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0154-0-1-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
Pensions:
Veterans:
04.01 Improved law................ 2,184 2,268 2,331
04.02 Prior law................... 78 66 56
04.03 Old law..................... 1 1
--------- --------- ----------
04.91 Total veterans............ 2,263 2,335 2,387
Survivors:
05.01 Improved law................ 673 666 659
05.02 Prior law................... 127 115 104
05.03 Old law..................... 2 2 2
--------- --------- ----------
05.91 Total survivors........... 802 783 765
--------- --------- ----------
06.93 Total pensions.............. 3,065 3,118 3,152
Other expenses:
07.01 Medical facility expenses..... 2 2 2
07.02 Reimbursement to GOE and VHA.. 19 24 24
--------- --------- ----------
07.91 Total other expenses........ 21 26 26
--------- --------- ----------
08.00 Total direct program.......... 3,086 3,144 3,178
Reimbursable program:
09.01 Minimum income for widows
program....................... 1 6
--------- --------- ----------
10.00 Total obligations............... 3,086 3,145 3,184
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3,074 3,145 3,184
22.22 Unobligated balance transferred
from other accounts............. 12
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,086 3,145 3,184
23.95 New obligations................... -3,086 -3,145 -3,184
24.40 Unobligated balance available, end
of year: Uninvested balance.....
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 3,044 2,989 3,178
41.00 Transferred to other accounts... -160
42.00 Transferred from other accounts. 190 155
--------- --------- ----------
43.00 Appropriation (total)......... 3,074 3,144 3,178
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1 6
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,074 3,145 3,184
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 3 254 258
73.10 New obligations................... 3,086 3,145 3,184
73.20 Total outlays (gross)............. -2,834 -3,141 -3,183
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 254 258 260
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 2,831 2,886 2,919
86.93 Outlays from current balances..... 3 254 258
86.97 Outlays from new permanent
authority....................... 1 6
86.98 Outlays from permanent balances...
--------- --------- ----------
87.00 Total outlays (gross)........... 2,834 3,141 3,183
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -1 -6
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 3,074 3,144 3,178
90.00 Outlays........................... 2,834 3,140 3,177
---------------------------------------------------------------------------
Pension benefits may be paid to veterans or their survivors. A
veteran's entitlement is based on active duty service of a specific
length (normally 90 days or more) during a designated war period,
disabilities considered permanent and total, and countable income below
established levels. There is no disability requirement for survivor
cases. Income support is provided at established benefit levels.
Veterans who are under the age of 45 and are in receipt of a
disability pension will be evaluated to determine whether a vocational
goal is reasonably feasible. Those for whom a vocational goal is
feasible are eligible for a program of vocational training.
An automatic annual cost-of-living increase comparable to the annual
social security increase is provided for those pensioners in the
improved program and to parents receiving dependency and indemnity
compensation. The increase, effective with payments made on January 1,
1998, is expected to be 2.7 percent.
[[Page 902]]
AVERAGE NUMBER OF PENSION CASES AND PAYMENTS
1996 actual 1997 est. 1998 est.
Veterans:
Improved law...................... 373,947 373,577 373,693
Prior law......................... 49,134 41,892 35,758
Old law and service............... 636 531 449
------------------------------------
Total......................... 423,717 416,000 409,900
Average payment per case, per year $5,338 $5,610 $5,821
------------------------------------
Total obligations (in
millions)................... $2,262 $2,334 $2,386
====================================
Survivors:
Improved law...................... 209,467 203,349 197,865
Prior law......................... 128,367 115,169 103,504
Old law and service............... 3,855 3,182 2,631
------------------------------------
Total......................... 341,689 321,700 304,000
Average payment per case, per year $2,349 $2,434 $2,517
------------------------------------
Total obligations (in
millions)................... 803 783 765
====================================
Minimum Income for Widows Program:
Widows............................ 800 793
Average benefit per case, per year.. $1,736 $7,133
------------------------------------
Total obligations (in
millions)................... $1 $6
Vocational training:
Trainees.......................... 136 110 85
Average benefit per year.......... $2,625 $2,700 $2,776
------------------------------------
Total obligations (in
millions) <SUP>1............
====================================
1 Amounts round to less than $1 million.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0154-0-1-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
42.0 Direct obligations: Insurance
claims and indemnities.......... 3,086 3,144 3,178
99.0 Reimbursable obligations:
Subtotal, reimbursable
obligations..................... 1 6
--------- --------- ----------
99.9 Total obligations............... 3,086 3,145 3,184
---------------------------------------------------------------------------
The Administration is proposing legislation which will make
permanent two provisions of the Omnibus Budget Reconciliation Act of
1993 due to expire at the end of 1998: (1) authorization of VA access to
certain Internal Revenue Service data for determining eligibility for
veterans pension benefits; and (2) limiting pension benefits to
Medicaid-eligible beneficiaries in nursing homes.
<F-dash>
Burial Benefits and Miscellaneous Assistance
For the payment of burial benefits, emergency and other officers'
retirement pay, adjusted-service credits and certificates, payment of
premiums due on commercial life insurance policies guaranteed under
Article IV of the Soldiers' and Sailors' Civil Relief Act of 1940, as
amended, and for other benefits as authorized by law, $119,300,000, to
remain available until expended. (38 U.S.C. 107, 1312, 1977, and 2106,
chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540-548; 43 Stat. 122,
123; 45 Stat. 735; Stat. 76 Stat. 1198.) (Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0155-0-1-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Burial benefits:
07.01 Burial allowances............... 35 35 35
07.02 Burial plots.................... 12 12 11
07.03 Service-connected deaths........ 12 12 12
07.04 Burial flags.................... 16 17 18
07.05 Headstones and markers.......... 29 30 31
07.07 Outer burial receptacles........ 8 9 10
--------- --------- ----------
07.91 Total burial benefits......... 112 115 117
08.03 Special allowance dependents...... 1 1 1
08.04 Equal access to justice........... 1 1 1
--------- --------- ----------
08.91 Total miscellaneous assistance.. 2 2 2
--------- --------- ----------
10.00 Total obligations (object class
42.0)......................... 114 117 119
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 114 117 119
23.95 New obligations................... -114 -117 -119
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 112 118 119
41.00 Transferred to other accounts..... -1
42.00 Transferred from other accounts... 2
--------- --------- ----------
43.00 Appropriation (total)........... 114 117 119
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 114 117 119
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 114 117 119
73.20 Total outlays (gross)............. -114 -117 -119
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 114 117 119
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 114 117 119
90.00 Outlays........................... 114 117 119
---------------------------------------------------------------------------
Burial benefits.--Provides for: (a) the payment of an allowance of
$300 (plus transportation charges where death occurs under VA care) to
reimburse, in part, the burial and funeral expense of an eligible
deceased veteran; (b) the payment of $150 for a plot allowance where an
eligible veteran is not buried in a national cemetery or other cemetery
under the jurisdiction of the United States; (c) the payment of a burial
allowance up to $1,500 when a veteran dies as the result of service-
connected disability; (d) furnishing a flag to drape the casket of each
deceased veteran entitled thereto; (e) furnishing a headstone or marker
for the grave of a veteran and, in certain cases, eligible dependents;
and (f) authority to provide outer burial receptacles in the National
Cemetery System.
NUMBER OF BURIAL BENEFITS
1996 actual 1997 est. 1998 est.
Burial allowance.................... 90,775 88,400 88,200
Burial plot......................... 80,715 77,000 73,500
Service-connected death............. 9,262 9,400 9,500
Burial flags........................ 439,752 448,800 457,200
Headstone markers................... 319,758 326,000 332,000
Headstone allowance................. 14 10
Outer burial receptacles............ 47,220 51,734 52,354
Miscellaneous assistance.--Provides for: (a) payments to emergency
officers of World War I and certain officers of the Regular
Establishment who have retired because of service-connected disability;
(b) payments for claims made pursuant to the provision of the World War
Adjusted Compensation Act of 1924, as amended; (c) a special allowance
(38 U.S.C. 1312) to dependents of certain veterans who died after
December 31, 1956, but who were not fully and currently insured under
the Social Security Act; and (d) payments authorized by the Equal Access
to Justice Act.
MISCELLANEOUS ASSISTANCE CASELOAD
1996 actual 1997 est. 1998 est.
Retired Officers.................... 4 3 2
Adjusted service and dependence pay.
Special allowance dependents........ 152 152 152
Equal Access to Justice payments.... 206 220 220
<F-dash>
Readjustment Benefits
For the payment of readjustment and rehabilitation benefits to or on
behalf of veterans as authorized by 38 U.S.C. chapters 21,
[[Page 903]]
30, 31, 34, 35, 36, 39, 51, 53, 55, and 61, [$1,377,000,000]
$1,366,000,000, to remain available until expended: Provided, That funds
shall be available to pay any court order, court award or any compromise
settlement arising from litigation involving the vocational training
program authorized by section 18 of Public Law 98-77, as amended.
(Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0137-0-1-702 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
Education and training:
00.01 Sons and daughters............ 91 94 96
00.02 Spouses....................... 10 11 12
--------- --------- ----------
00.91 Total education and training 101 105 108
Special assistance to disabled
veterans:
01.01 Vocational rehabilitation..... 355 358 341
01.02 Housing grants................ 14 14 14
01.03 Automobiles, adaptive
equipment, maintenance and
repair...................... 27 27 28
--------- --------- ----------
01.91 Total special assistance to
disabled veterans......... 396 399 383
02.01 Work study...................... 26 26 28
02.02 Payments to states.............. 13 13 13
02.03 All-volunteer assistance:
Veterans' basic benefits...... 689 805 880
--------- --------- ----------
02.91 All-volunteer assistance and
other....................... 728 844 921
--------- --------- ----------
02.93 Total direct program.......... 1,225 1,348 1,412
Reimbursable program:
03.01 Veterans' basic benefits........ 14 14 11
03.02 Veterans' supplementary benefits 74 72 70
03.03 Reservists benefits............. 95 98 99
--------- --------- ----------
03.91 Total reimbursables........... 183 184 180
--------- --------- ----------
10.00 Total obligations............... 1,408 1,532 1,592
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 93 27 46
22.00 New budget authority (gross)...... 1,338 1,561 1,546
22.10 Resources available from
recoveries of prior year
obligations..................... 9 10
22.30 Unobligated balance expiring...... -5 -21
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,435 1,577 1,592
23.95 New obligations................... -1,408 -1,532 -1,592
24.40 Unobligated balance available, end
of year: Uninvested balance..... 27 46
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 1,345 1,377 1,366
41.00 Transferred to other accounts... -190
--------- --------- ----------
43.00 Appropriation (total)......... 1,155 1,377 1,366
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 183 184 180
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,338 1,561 1,546
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 51 54 50
73.10 New obligations................... 1,408 1,532 1,592
73.20 Total outlays (gross)............. -1,396 -1,526 -1,589
73.45 Adjustments in unexpired accounts. -9 -10
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 54 50 53
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 1,104 1,342 1,366
86.93 Outlays from current balances..... 43
86.97 Outlays from new permanent
authority....................... 183 184 180
86.98 Outlays from permanent balances... 109
--------- --------- ----------
87.00 Total outlays (gross)........... 1,396 1,526 1,589
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Federal sources............... -183 -184 -180
88.40 Non-Federal sources...........
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -183 -184 -180
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,155 1,377 1,366
90.00 Outlays........................... 1,212 1,342 1,409
---------------------------------------------------------------------------
This appropriation finances educational assistance allowances for
certain peacetime veterans and for eligible dependents of those
veterans: (a) who died from service-connected causes or have a total and
permanent rated service-connected disability; and (b) servicepersons who
were captured or missing in action. In addition, certain disabled
veterans are provided with vocational rehabilitation, specially adapted
housing grants, and automobile grants with the associated approved
adaptive equipment. The funding level in 1998 will consist of
appropriated funds of $1,366 million and available funds from 1997 of
$46 million.
The following table provides a comparison of trainees and costs for
the Dependents Educational Assistance program.
NUMBER OF TRAINEES AND COST
1996 actual 1997 est. 1998 est.
Sons and daughters:
Number of trainees................ 35,685 36,609 37,558
Average cost per trainee.......... $2,559 $2,560 $2,560
------------------------------------
Total cost (in millions)...... $91 $94 $96
====================================
Spouses and widow(ers):
Number of trainees................ 4,969 5,273 5,597
Average cost per trainee.......... $2,067 $2,068 $2,069
------------------------------------
Total cost (in millions)...... $10 $11 $12
====================================
Special assistance to disabled veterans.--Service-disabled veterans
requiring vocational rehabilitation receive assistance to cover the
costs of subsistence, tuition, books, supplies, and equipment.
Specially adapted housing grants, up to a maximum of $38,000, are
provided to certain severely disabled veterans. Veterans who suffer
service-connected blindness or who have lost the use of both upper
extremities can receive up to $6,500.
An allowance, up to a maximum of $5,500, is provided to certain
service-disabled veterans and servicepersons toward the purchase price
of an automobile. Adaptive equipment and the maintenance and replacement
of such equipment is also provided.
The following table shows a caseload and cost comparison for these
beneficiaries.
CASELOAD AND AVERAGE COST DATA
1996 actual 1997 est. 1998 est.
Vocational Rehabilitation:
Number of trainees:
10% rated disabled.............. 3,987 3,919 3,635
rehabilitated................... 787 905 1,081
20% rated disabled.............. 15,056 14,800 13,728
rehabilitated................... 2,182 2,508 2,995
30% rated disabled.............. 12,055 11,849 10,992
rehabilitated................... 1,784 2,051 2,449
40% rated disabled.............. 7,270 7,146 6,630
rehabilitated................... 1,102 1,267 1,513
50% rated disabled.............. 3,845 3,779 3,506
rehabilitated................... 586 674 804
60% rated disabled.............. 2,746 2,699 2,504
rehabilitated................... 404 465 555
70% rated disabled.............. 1,051 1,033 958
rehabilitated................... 173 199 238
80% rated disabled.............. 485 477 442
rehabilitated................... 97 111 133
90% rated disabled.............. 154 151 140
[[Page 904]]
rehabilitated................... 38 42 50
100% rated disabled............. 5,072 4,986 4,625
rehabilitated................... 242 278 332
Total number of trainees...... 51,721 50,839 47,160
Total number rehabilitated.... 7,395 8,500 10,150
Percent of total rehabilitated 14.30 16.72 21.52
Average cost per trainee.......... $6,856 $7,045 $7,238
------------------------------------
Total cost (in millions)...... $355 $358 $341
====================================
Housing grants:
Number of housing grants.......... 429 429 429
Average cost per grant............ $33,535 $33,535 $33,535
------------------------------------
Total cost (in millions)...... $14 $14 $14
====================================
Automobiles or other conveyances:
Number of conveyances............. 843 843 843
Average cost per conveyance....... $5,496 $5,496 $5,496
------------------------------------
Total cost (in millions)...... $5 $5 $5
====================================
Adaptive equipment (including
maintenance, repair and
installation for automobiles):
Number of items................... 6,734 6,593 6,455
Average cost...................... $3,318 $3,411 $3,500
------------------------------------
Total cost (in millions)...... $22 $22 $23
====================================
Work-Study.--Certain veterans pursuing a program of rehabilitation,
education, or training, who are enrolled as a full-time student, can
work up to 250 hours and receive a maximum of $1,187.50 per semester,
paid at the rate of the Federal ($5.15 on 9/1/97) or State minimum wage,
whichever is higher.
1996 actual 1997 est. 1998 est.
Number of contracts............... 30,887 27,864 28,687
Payments to States.--State approving agencies are reimbursed for the
costs of inspecting, approving, and supervising programs of education
and training offered by educational institutions and training
establishments in which veterans, dependents, and reservists are
enrolled or are about to enter.
All Volunteer Force educational assistance (Montgomery GI Bill).--
Public Law 98-525, enacted October 19, 1984, established two new
peacetime educational programs: an assistance program for veterans who
enter active duty during the period beginning July 1, 1985; and an
assistance program for certain members of the Selected Reserve. The
Readjustment benefits appropriation pays the basic benefit allowance for
the peacetime veterans. Supplementary educational assistance for
peacetime veterans and the basic benefit allowance for reservists are
financed by payments from the Department of Defense and the Department
of Transportation.
The following table shows a caseload and cost comparison for these
beneficiaries under existing legislation.
CASELOAD AND AVERAGE COST DATA
1996 actual 1997 est. 1998 est.
Veterans:
Number of trainees................ 296,353 323,400 345,300
Average cost per trainee.......... $2,623 $2,755 $2,784
------------------------------------
Total cost (in millions)...... \1\$777 \2\ $891 \3\ $961
====================================
Reservists:
Number of trainees................ 86,196 82,400 80,300
Average cost per trainee.......... $1,101 $1,187 $1,235
------------------------------------
Total cost (in millions)...... $95 $98 $99
====================================
\1\ Includes $689 million of basic benefits (VA funded), $14 million
of basic benefits (DOD funded), and $74 million of supplemental benefits
(DOD funded).
\2\ Includes $805 million of basic benefits (VA funded), $14 million
of basic benefits, (DOD funded) and $72 million of supplemental benefits
(DOD funded).
\3\ Includes $880 million of basic benefits (VA funded), $11 million
of basic benefits (DOD funded) and $70 million of supplemental benefits
(DOD funded).
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0137-0-1-702 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... 1,225 1,348 1,412
99.0 Reimbursable obligations:
Subtotal, reimbursable
obligations..................... 183 184 180
--------- --------- ----------
99.9 Total obligations............... 1,408 1,532 1,592
---------------------------------------------------------------------------
<F-dash>
Reinstated Entitlement Program for Survivors Under Public Law 97-377
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0200-0-1-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct program:
00.01 Benefit payments................ 21 19 18
00.02 Administrative expenses, VA..... 1 1 1
00.03 Cole v. Brown payments.......... 1
--------- --------- ----------
00.91 Total direct program.......... 23 20 19
--------- --------- ----------
10.00 Total obligations............... 23 20 19
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 22 20 19
23.95 New obligations................... -23 -20 -19
----------------------------------------------------------------------------
New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 22 20 19
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 11 12 12
73.10 New obligations................... 23 20 19
73.20 Total outlays (gross)............. -20 -20 -19
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 12 12 12
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 10 8 7
86.98 Outlays from permanent balances... 10 12 12
--------- --------- ----------
87.00 Total outlays (gross)........... 20 20 19
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -22 -20 -19
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -2
---------------------------------------------------------------------------
In accordance with Public Law 97-377, this program restores social
security benefits to certain surviving spouses or children of veterans
who died of service-connected causes. Financing is provided in the form
of offsetting collections from the Department of Defense.
CASELOAD AND AVERAGE COST DATA
1996 actual 1997 est. 1998 est.
Spouses............................. 432 380 340
Average benefit..................... $10,334 $10,759 $11,190
Obligations (in millions)........... $4,464 $4,089 $3,805
Children............................ 1,729 1,580 1,440
Average benefit..................... $9,299 $9,543 $9,966
Obligations (in millions)........... $16,078 $15,078 $14,350
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0200-0-1-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
99.0 Reimbursable obligations:
Subtotal, reimbursable
obligations..................... 23 20 19
--------- --------- ----------
[[Page 905]]
99.9 Total obligations............... 23 20 19
---------------------------------------------------------------------------
<F-dash>
Veterans Insurance and Indemnities
For military and naval insurance, national service life insurance,
servicemen's indemnities, service-disabled veterans insurance, and
veterans mortgage life insurance as authorized by 38 U.S.C. chapter 19;
70 Stat. 887; 72 Stat. 487, [$38,970,000] $51,360,000, to remain
available until expended. (Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations Act,
1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0120-0-1-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.04 Payment to National service life
insurance fund.................. 2 2 2
00.05 Payment to Service-disabled
veterans insurance fund......... 34 31 43
00.06 Total operating expenses.......... 9 9 9
--------- --------- ----------
10.00 Total obligations............... 45 42 54
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 45 41 54
23.95 New obligations................... -45 -42 -54
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 25 39 51
42.00 Transferred from other accounts. 18
--------- --------- ----------
43.00 Appropriation (total)......... 43 39 51
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 2 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 45 41 53
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 45 42 54
73.20 Total outlays (gross)............. -45 -41 -53
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 43 39 51
86.97 Outlays from new permanent
authority....................... 2 2 2
--------- --------- ----------
87.00 Total outlays (gross)........... 45 41 53
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.40 Offsetting collections (cash)
from: VMLI premiums........... -2 -2 -2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 43 39 53
90.00 Outlays........................... 43 39 53
---------------------------------------------------------------------------
Note.--The Department of Veterans Affairs insurance policy loans are
not an extension of Federal credit. Credit schedules previously shown
for this account have been discontinued.
Military and naval insurance.--Payments are made to the U.S.
Government life insurance fund for certain World War I veterans for
extra hazards of military service and for claims on war risk insurance
issued to servicemen and veterans of World War I.
National service life insurance.--Payments are made to the national
service life insurance fund for certain World War II veterans for: (a)
the extra hazards of service; (b) gratuitous insurance granted to
certain persons unable to apply for national service life insurance; and
(c) death claims on policies under the waiver of a premium while the
insured was on active duty.
Payments are also made to policyholders and beneficiaries on
nonparticipating national service life insurance policies issued to
World War II veterans with service-connected disabilities.
Veterans mortgage life insurance (VMLI).--Payments are made to
mortgage holders under this program which provides mortgage protection
life insurance to veterans who have received a grant for specially
adapted housing due to severe disabilities.
The general decline in the number of policies and the amount of
insurance in force is expected to continue in 1998 as indicated in the
following table (dollars in thousands).
1996 actual 1997 est. 1998 est.
National service life insurance
policies:
Number of policies................ 1,514 1,383 1,260
Amount of insurance............... $7,692 $7,000 $6,350
VMLI policies:
Number of policies................ 3,890 3,740 3,590
Amount of insurance............... $229,115 $228,400 $230,000
Payment to service-disabled veterans insurance fund.--Payments are
made to the service-disabled veterans insurance fund to supplement the
premiums and other receipts of the fund in amounts necessary to pay
claims on insurance policies issued to veterans with service-connected
disabilities.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0120-0-1-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
41.0 Grants, subsidies, and
contributions................... 36 33 45
42.0 Insurance claims and indemnities.. 9 9 9
--------- --------- ----------
99.9 Total obligations............... 45 42 54
---------------------------------------------------------------------------
<F-dash>
Public enterprise funds:
Service-Disabled Veterans Insurance Fund
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4012-0-3-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Operating expenses:
00.01 Death claims.................... 39 43 48
00.02 All other....................... 13 13 13
--------- --------- ----------
00.91 Total operating expenses...... 52 56 61
01.01 Capital investment................ 14 14 14
--------- --------- ----------
10.00 Total obligations............... 66 70 75
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Fund balance..... 3 6 3
22.00 New budget authority (gross)...... 69 66 77
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 72 72 80
23.95 New obligations................... -66 -70 -75
24.90 Unobligated balance available, end
of year: Fund balance........... 6 3 3
----------------------------------------------------------------------------
New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 69 66 77
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Fund balance. 5 5 4
73.10 New obligations................... 66 70 75
73.20 Total outlays (gross)............. -66 -71 -74
74.90 Unpaid obligations, end of year:
Obligated balance: Fund balance. 5 4 4
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 61 66 70
86.98 Outlays from permanent balances... 5 5 4
--------- --------- ----------
87.00 Total outlays (gross)........... 66 71 74
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Federal sources: Payments from
VI and I.................... -34 -31 -43
Non-Federal sources:
88.40 Interest on loans........... -3 -2 -2
88.40 Insurance premiums earned... -23 -23 -22
88.40 Optional settlements........ -1 -1 -1
88.40 Repayments of loans......... -8 -9 -9
--------- --------- ----------
[[Page 906]]
88.90 Total, offsetting
collections (cash)........ -69 -66 -77
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -3 5 -3
---------------------------------------------------------------------------
This fund finances the payment of claims on nonparticipating life
insurance policies issued and currently is open for new issues to
veterans having service-connected disabilities. The program provides
insurance coverage for service-disabled veterans at standard rates.
Administrative expenses are paid from the General operating expenses
appropriation.
Operating costs--
Death claims.--Represents payments to designated beneficiaries.
All other.--Represents payments to policyholders who surrender
their policies for their cash value and hold endowment policies
which have matured.
Capital investment.--A policyholder may borrow up to 94 percent of
the value of his policy.
The trend in the number and amount of policies in force is indicated
in the following table (dollars in thousands):
1996 actual 1997 est. 1998 est.
Number of policies.................. 163,053 158,833 156,723
Insurance in force.................. $1,492,311 $1,464,200 $1,436,300
Financing.--Operations are financed from premiums and other
receipts. Additional funds are received by transfer from the veterans'
insurance and indemnities appropriation, instead of direct
appropriations to this fund.
Operating results and financial condition.--Since premium and other
receipts are insufficient to cover operations, the fund continues to
project liabilities in excess of assets. The deficit is expected to
reach an estimated $451 million by September 30, 1998.
Statement of Operations (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-4012-0-3-701 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 64 72 68 79
0102 Expense........................... -66 -67 -69 -71
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ -2 5 -1 8
-----------------------------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-4012-0-3-701 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 8 11 7 9
1206 Non-Federal assets: Receivables,
net............................. 1 1 3 2
1601 Net value of assets related to
pre-1992 direct loans receivable
and acquired defaulted
guaranteed loans receivable:
Direct loans, gross............. 49 55 59 65
------------ -------------- ------------ -------------
1999 Total assets.................... 58 67 69 76
LIABILITIES:
Non-Federal liabilities:
2201 Accounts payable................ 4 4 5 5
2206 Pension and other actuarial
liabilities................... 516 520 522 522
2207 Other........................... 1 1 1 1
------------ -------------- ------------ -------------
2999 Total liabilities............... 521 525 528 528
NET POSITION:
3100 Appropriated capital.............. 3 6 3 5
3200 Invested capital.................. -466 -463 -462 -456
------------ -------------- ------------ -------------
3999 Total net position.............. -463 -457 -459 -451
------------ -------------- ------------ -------------
4999 Total liabilities and net position 58 68 69 77
-----------------------------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4012-0-3-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
33.0 Investments and loans............. 14 14 14
42.0 Insurance claims and indemnities.. 52 56 61
--------- --------- ----------
99.9 Total obligations............... 66 70 75
---------------------------------------------------------------------------
<F-dash>
Veterans Reopened Insurance Fund
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4010-0-3-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Operating expenses:
00.01 Death claims.................... 31 36 39
00.02 Dividends....................... 30 31 27
00.03 All other....................... 9 9 8
--------- --------- ----------
00.91 Total operating expenses...... 71 76 74
01.01 Capital investment: Policy loans.. 7 7 7
--------- --------- ----------
10.00 Total obligations............... 78 83 81
----------------------------------------------------------------------------
Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.90 Fund balance.................... 1 1
21.91 U.S. Securities: Par value...... 498 492 480
--------- --------- ----------
21.99 Total unobligated balance,
start of year............... 498 493 481
22.00 New budget authority (gross)...... 72 71 66
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 570 564 547
23.95 New obligations................... -78 -83 -81
Unobligated balance available, end of year:
24.90 Fund balance.................... 1 1 1
24.91 U.S. Securities: Par value...... 492 480 465
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 493 481 466
----------------------------------------------------------------------------
New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 72 71 66
----------------------------------------------------------------------------
Change in unpaid obligations:
72.91 Unpaid obligations, start of year:
Obligated balance: U.S.
Securities: Par value........... 28 33 36
73.10 New obligations................... 78 83 81
73.20 Total outlays (gross)............. -73 -79 -78
74.91 Unpaid obligations, end of year:
Obligated balance: U.S.
Securities: Par value........... 33 36 39
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 69 71 66
86.98 Outlays from permanent balances... 4 8 12
--------- --------- ----------
87.00 Total outlays (gross)........... 73 79 78
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Federal sources: Interest on
U.S. securities............. -48 -46 -43
Non-Federal sources:
88.40 Interest on loans........... -1 -2 -2
88.40 Insurance premiums earned... -17 -17 -15
88.40 Repayments of loans......... -6 -6 -6
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -72 -71 -66
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1 9 12
---------------------------------------------------------------------------
Note.--The Department of Veterans Affairs insurance policy loans are
not an extension of Federal credit. Credit schedules previously shown
for this account have been discontinued.
This fund pays claims and administrative costs on participating life
insurance policies issued during the period May 1, 1965, through May 2,
1966, under three life insurance programs: (1) service-disabled standard
insurance; (2) service-disabled rated insurance; and (3) nonservice
disabled insur-
[[Page 907]]
ance availing disabled World War II and Korean conflict veterans an
opportunity to acquire life insurance coverage who were no longer
eligible for other Government insurance.
Budget program--
Death claims.--Represents payments to designated beneficiaries.
Dividends.--Policyholders participate in the distribution of
annual dividends.
All other.--This represents payments to the General operating
expenses appropriation for the administrative costs of processing
claims and maintaining the accounts, and to those policyholders who:
(a) surrender their policies for cash value; (b) hold endowment
policies which have matured; and (c) have purchased total disability
income coverage and subsequently become disabled.
Policy loans made.--A policyholder may borrow up to 94 percent
of the cash value of his policy at an interest rate adjusted to
reflect private sector borrowing costs.
The following table reflects the decrease in the number of
policies and the amount of insurance in force (dollars in
thousands):
1996 actual 1997 est. 1998 est.
Number of policies................ 97,502 92,782 87,852
Insurance in force................ $750,079 $730,000 $706,800
Financing.--Operations are financed from premiums collected from
policyholders and interest on investments. Excess earnings of the fund
are now distributed to the policyholders in the form of an annual
dividend.
Statement of Operations (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-4010-0-3-701 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 69 68 65 61
0102 Expense........................... -78 -62 -66 -62
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ -9 6 -1 -1
-----------------------------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-4010-0-3-701 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:
Investments in US securities:
1102 Treasury securities, par...... 526 525 516 504
1106 Receivables, net.............. 12 12 11 10
1206 Non-Federal assets: Receivables,
net............................. 1 1
1601 Net value of assets related to
pre-1992 direct loans receivable
and acquired defaulted
guaranteed loans receivable:
Direct loans, gross............. 26 28 29 30
------------ -------------- ------------ -------------
1999 Total assets.................... 565 565 557 545
LIABILITIES:
Non-Federal liabilities:
2201 Accounts payable................ 38 41 45 48
2206 Pension and other actuarial
liabilities................... 516 508 496 482
2207 Other........................... 2 2 2 2
------------ -------------- ------------ -------------
2999 Total liabilities............... 557 551 543 532
NET POSITION:
3100 Appropriated capital.............. 498 492 481 465
3200 Invested capital.................. -489 -478 -467 -452
------------ -------------- ------------ -------------
3999 Total net position.............. 9 14 14 13
------------ -------------- ------------ -------------
4999 Total liabilities and net position 566 565 557 545
-----------------------------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4010-0-3-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
33.0 Investments and loans............. 7 7 7
42.0 Insurance claims and indemnities.. 37 42 44
43.0 Interest and dividends............ 34 34 30
--------- --------- ----------
99.9 Total obligations............... 78 83 81
---------------------------------------------------------------------------
<F-dash>
Servicemembers' Group Life Insurance Fund
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4009-0-3-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Premium payments.................. 474 509 492
00.03 Payment to GOE account............ 1 1
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... 474 510 493
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.91 Unobligated balance available,
start of year: U.S. Securities:
Par value....................... 15 7 1
22.00 New budget authority (gross)...... 467 504 492
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 482 511 493
23.95 New obligations................... -474 -510 -493
24.91 Unobligated balance available, end
of year: U.S. Securities: Par
value........................... 7 1 1
----------------------------------------------------------------------------
New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 467 504 492
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: offsetting
collections..................... 4 3 3
73.10 New obligations................... 474 510 493
73.20 Total outlays (gross)............. -476 -510 -492
74.40 Unpaid obligations, end of year:
Obligated balance: offsetting
collections..................... 3 3 3
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 461 503 491
86.98 Outlays from permanent balances... 15 7 1
--------- --------- ----------
87.00 Total outlays (gross)........... 476 510 492
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.40 Offsetting collections (cash)
from: Non-Federal sources:
Withholdings from serviceman's
pay........................... -467 -504 -492
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 8 6
---------------------------------------------------------------------------
Budget program.--This fund finances the payment of group life
insurance premiums to private insurance companies under the
Servicemembers' Group Life Insurance Act of 1965, as amended.
Statement of Operations (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-4009-0-3-701 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 461 467 504 493
0102 Expense........................... -489 -475 -510 -493
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ -28 -8 -6
-----------------------------------------------------------------------------------------------
<F-dash>
Credit accounts:
Veterans Housing Benefit Program Fund Program Account
[Guaranty and Indemnity Program Account]
(including transfer of funds)
For the cost of direct and guaranteed loans, such sums as may be
necessary to carry out the program, as authorized by 38 U.S.C. chapter
37, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further, That
during fiscal year 1998, within the resources available, not to exceed
$300,000 in gross obligations for direct loans are authorized for
specially adapted housing loans.
In addition, for administrative expenses to carry out the direct and
guaranteed loan programs, [$105,226,000] $160,437,000, which may be
transferred to and merged with the appropriation for ``General
[[Page 908]]
operating expenses''. (Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1997.)
Unavailable Collections (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0138-0-1-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 263 169 918
Receipts:
02.01 Guaranteed loan downward subsidy
reestimate...................... 789
02.02 Direct loan downward subsidy
reestimate...................... 157
--------- --------- ----------
02.99 Total receipts.................. 946
--------- --------- ----------
03.00 Offsetting Collections............ 169
04.00 Total: Balances and collections... 432 1,115 918
Appropriation:
05.01 Veterans housing benefit fund..... -263 -197 -192
--------- --------- ----------
05.99 Subtotal appropriation............ -263 -197 -192
07.99 Total balance, end of year........ 169 918 726
---------------------------------------------------------------------------
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0138-0-1-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loan subsidy............... 30 49 50
00.02 Guaranteed loan subsidy........... 447 148 142
00.05 Reestimates of direct loan subsidy 63 73
00.06 Interest on reestimates of the
direct loan subsidy............. 13 12
00.07 Reestimates of the guaranteed loan
subsidy......................... 238 74
00.08 Interest on reestimates of the
guaranteed loan subsidy......... 11 9
00.09 Administrative expenses........... 118 139 160
--------- --------- ----------
10.00 Total obligations............... 920 504 352
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 920 504 352
23.95 New obligations................... -920 -504 -352
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 118 139 160
40.25 Appropriation (special fund,
indefinite)................... 197 192
--------- --------- ----------
43.00 Appropriation (total)......... 118 336 352
Permanent:
60.05 Appropriation (indefinite)...... 168
Spending authority from
offsetting collections:
68.00 Offsetting collections (cash)
Total downward reestimate... 708
68.26 Offsetting collections
(unavailable balances)...... 263
68.45 Portion not available for
obligation (limitation on
obligations)................ -169
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)................... 802
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 920 504 352
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 920 504 352
73.20 Total outlays (gross)............. -920 -504 -352
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 118 336 352
86.97 Outlays from new permanent
authority....................... 802 168
--------- --------- ----------
87.00 Total outlays (gross)........... 920 504 352
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -708
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 212 504 352
90.00 Outlays........................... 211 504 352
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
1996 actual 1997 est. 1998 est.
Enacted/requested:
Budget Authority.................. 212 504 352
Outlays........................... 212 504 352
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -29
Outlays........................... -29
------------------------------------
Total:
Budget Authority.................. 212 504 323
Outlays........................... 212 504 323
====================================
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0138-0-1-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loan levels................ 1,336 1,887 2,144
--------- --------- ----------
1159 Total direct loan levels........ 1,336 1,887 2,144
Direct loan subsidy (in percent):
1320 Subsidy rate...................... 1.76 2.61 2.36
--------- --------- ----------
1329 Weighted average subsidy rate... 1.76 2.61 2.36
Direct loan subsidy budget authority:
1330 Subsidy budget authority.......... 29 49 50
--------- --------- ----------
1339 Total subsidy budget authority.. 29 49 50
Direct loan subsidy outlays:
1340 Subsidy outlays................... 105 134 50
--------- --------- ----------
1349 Total subsidy outlays........... 105 134 50
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 Loan guarantee levels............. 28,676 30,230 28,945
--------- --------- ----------
2159 Total loan guarantee levels..... 28,676 30,230 28,945
Guaranteed loan subsidy (in percent):
2320 Subsidy rate...................... 0.42 0.49 0.49
--------- --------- ----------
2329 Weighted average subsidy rate... 0.42 0.49 0.49
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority.......... 697 231 142
--------- --------- ----------
2339 Total subsidy budget authority.. 697 231 142
Guaranteed loan subsidy outlays:
2340 Subsidy outlays................... 120 148 142
--------- --------- ----------
2349 Total subsidy outlays........... 120 148 142
----------------------------------------------------------------------------
Administrative expense data:
3510 Budget authority.................. 118 139 160
3590 Outlays........................... 118 139 160
---------------------------------------------------------------------------
The Administration is proposing to consolidate all information on
Loan Guaranty, Guaranty and Indemnity, and Direct Loan housing programs
into a single housing fund called the Veterans Housing Benefit Program
Fund (VHBPF). All current year and prior year data are presented on a
comparable basis to the budget year in the single account. A legislative
proposal is being submitted with this budget that supports this budget
presentation. Beginning October 1, 1997, all appropriations and income
received from Loan Guaranty, Guaranty and Indemnity, and Direct Loan
housing accounts would be deposited in this new fund (except the portion
specifically designated for the Native American Pilot Program). No
program changes result as an effect of this presentation.
As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the direct
loans obligated and loan guarantees committed in 1992 and beyond,
(including modifications of direct loans or loan guarantees that
resulted from obligations or commitments in any year) as well as for the
administrative expenses of this program. The subsidy amounts are
estimated on a net present value basis.
The following Federal guaranty protects lenders against losses: (a)
for loans of $45,000, or less, 50 percent of the
[[Page 909]]
loan is guaranteed; (b) for loans greater than $45,000, but not more
than $56,250, $22,500; (c) for loans more than $56,250 but less than
$144,000, the lesser of $36,000 or 40 percent of the loan; or (d) for
loans greater than $144,000, the lesser of $50,750 or 25 percent of the
loan.
The Administration is proposing legislation which will make
permanent three provisions of the Omnibus Budget Reconciliation Act of
1993 due to expire in 1998: (1) the loan origination fee increase of .75
percent; (2) the three-percent fee for multiple home loans with less
than five percent down; and (3) the current law on resale losses on
loans.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0138-0-1-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.3 Purchases of goods and services
from Government accounts........ 118 139 160
41.0 Grants, subsidies, and
contributions................... 802 365 192
--------- --------- ----------
99.9 Total obligations............... 920 504 352
---------------------------------------------------------------------------
<F-dash>
Veterans Housing Benefit Program Fund Program Account
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0138-4-1-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loan subsidy............... -29
--------- --------- ----------
10.00 Total obligations (object class
41.0)......................... -29
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -29
23.95 New obligations................... 29
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.05 Appropriation (indefinite)........ -29
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... -29
73.20 Total outlays (gross)............. 29
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority -29
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -29
90.00 Outlays........................... -29
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0138-4-1-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1159 Total direct loan levels..........
Direct loan subsidy (in percent):
1320 Subsidy rate...................... -1.36
--------- --------- ----------
1329 Weighted average subsidy rate... -1.36
Direct loan subsidy budget authority:
1330 Subsidy budget authority.......... -29
--------- --------- ----------
1339 Total subsidy budget authority.. -29
Direct loan subsidy outlays:
1340 Subsidy outlays................... -29
--------- --------- ----------
1349 Total subsidy outlays........... -29
---------------------------------------------------------------------------
Legislation will be proposed to increase the funding fees in the
vendee loan program to 2.25 percent, matching the FHA fee structure.
This program offers financing of VA real estate obtained as a result of
property foreclosures and is available to both veteran and non-veteran
purchasers.
Legislation will also be introduced to permanently extend loan asset
sales enhancement authority. This allows VA to guarantee the
certificates which securitize VA vendee loan sales. VA can then obtain
the best pricing for these loans and receive a greater cash yield
without any additional risk over previous loan sale procedures.
<F-dash>
Veterans Housing Benefit Program Fund Direct Loan Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4256-0-3-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loans...................... 1,336 1,887 2,144
00.02 Interest on Treasury borrowing.... 238 87 121
00.04 Property sales expense............ 1 1 2
00.05 Property improvement expense...... 1 1
00.06 Property management/other expense. 3 2
00.07 Payment of downward reestimate to
program account................. 113 120
00.08 Payment of excess interest earned
to program account.............. 12 37
--------- --------- ----------
10.00 Total obligations............... 1,703 2,135 2,268
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 1,703 2,135 2,268
23.95 New obligations................... -1,703 -2,135 -2,268
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 1,356 1,911 2,093
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 1,512 1,449 1,860
68.47 Portion applied to debt
reduction..................... -1,165 -1,225 -1,685
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 347 224 175
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 1,703 2,135 2,268
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Obligated
balance......................... 7 5 6
73.10 New obligations................... 1,703 2,135 2,268
73.20 Total financing disbursements
(gross)......................... -1,705 -2,134 -2,268
74.90 Unpaid obligations, end of year:
Obligated balance: Obligated
balance......................... 5 6 6
87.00 Total financing disbursements
(gross)......................... 1,705 2,134 2,268
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.00 Federal sources: Payments from
program account............. -105 -134 -51
Non-Federal sources:
88.40 Repayments of principal..... -17 -28 -37
88.40 Interest received on loans.. -48 -88 -115
88.40 Fees........................ -11 -17 -20
88.40 Interest from Treasury...... -126
88.40 Loan sale proceeds, net..... -1,196 -1,110 -1,548
88.40 Cash sale of properties..... -2 -18 -27
88.40 Other revenue............... -7 -54 -62
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,512 -1,449 -1,860
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 191 686 408
90.00 Financing disbursements........... 193 685 408
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4256-0-3-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 1,336 1,887 2,144
--------- --------- ----------
1150 Total direct loan obligations... 1,336 1,887 2,144
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 722 723 1,398
[[Page 910]]
1231 Disbursements: Direct loan
disbursements................... 1,396 1,887 2,144
Repayments:
1251 Repayments and prepayments...... -62 -27 -37
1253 Proceeds from loan asset sales
to the public with recourse... -1,196 -1,111 -1,549
1262 Adjustments: Discount on loan
asset sales to the public or
discounted...................... -38 -65 -92
Write-offs for default:
1263 Direct loans.................... -9 -9 -17
1264 Other adjustments, net.......... -90
--------- --------- ----------
1290 Outstanding, end of year........ 723 1,398 1,847
---------------------------------------------------------------------------
As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and beyond (including
modifications of direct loans that resulted from obligations in any
year). The amounts in this account are a means of financing and are not
included in the budget totals.
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-4256-0-3-704 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 1,018 954
1206 Non-Federal assets: Receivables,
net............................. 18 29
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 540 723 1,398 1,847
1404 Foreclosed property............. 6 58
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 546 781 1,398 1,847
1603 Net value of assets related to
pre-1992 direct loans receivable
and acquired defaulted
guaranteed loans receivable:
Allowance for estimated
uncollectible loans and interest
(-)............................. 15 28 38
------------ -------------- ------------ -------------
1999 Total assets.................... 1,582 1,779 1,426 1,885
LIABILITIES:
Federal liabilities:
2102 Interest payable................ 7 5
2104 Resources payable to Treasury... 1,575 1,768 1,413 1,868
Non-Federal liabilities:
2201 Accounts payable................ 7 7 13 17
2204 Liabilities for loan guarantees. -7 -1
------------ -------------- ------------ -------------
2999 Total liabilities............... 1,582 1,779 1,426 1,885
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1,582 1,779 1,426 1,885
-----------------------------------------------------------------------------------------------
<F-dash>
Veterans Housing Benefit Program Fund Direct Loan Financing Account
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4256-4-3-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Interest on Treasury borrowing.... -1
00.06 Payment to liquidating account for
debt collection................. 126
--------- --------- ----------
10.00 Total obligations............... 125
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 125
23.95 New obligations................... -125
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 156
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... -42
68.47 Portion applied to debt
reduction..................... 11
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... -31
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 125
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 125
73.20 Total financing disbursements
(gross)......................... -125
87.00 Total financing disbursements
(gross)......................... 125
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
88.00 Federal sources: Payments
from program account...... -29
88.00 Repayment from liquidating
account for debt
collection................ 43
Non-Federal sources:
88.40 Fees........................ 25
88.40 Loan sale proceeds, net..... 3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ 42
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 167
90.00 Financing disbursements........... 167
---------------------------------------------------------------------------
This schedule shows the effects of the Administration's proposal to
repeal restrictions on collection of loan guaranty debts by Federal
salary offset or Federal income tax refund offset.
Legislation will be proposed to increase the funding fees in the
vendee loan program to 2.25 percent, matching the FHA fee structure.
This program offers financing of VA real estate obtained as a result of
property foreclosures and is available to both veteran and non-veteran
purchasers.
Legislation will also be proposed to permanently extend loan asset
sales enhancement authority. This allows VA to guarantee the
certificates which securitize VA vendee loan sales. VA can then obtain
the best pricing for these loans and receive a greater cash yield
without any additional risk over previous loan sale procedures.
<F-dash>
Veterans Housing Benefit Program Fund Guaranteed Loan Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4257-0-3-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Acquisition of homes.............. 737 1,412 1,682
00.02 Losses on defaulted loans......... 215 309 385
00.03 Property sales expense............ 31 75 102
00.04 Property management expense....... 19 27 36
00.05 Property improvement expense...... 16 27 33
00.06 Loans acquired.................... 84 86 88
00.07 Payment of downward reestimate to
program account................. 462 684
00.08 Payment of excess interest to
program account................. 121 105
--------- --------- ----------
10.00 Total obligations............... 1,685 2,725 2,326
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Fund balance..... 3,428 3,744 3,170
22.00 New financing authority (gross)... 2,001 2,151 2,400
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,429 5,895 5,570
23.95 New obligations................... -1,685 -2,725 -2,326
24.90 Unobligated balance available, end
of year: Fund balance........... 3,744 3,170 3,244
----------------------------------------------------------------------------
[[Page 911]]
New financing authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 2,001 2,151 2,400
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Obligated
balance......................... 18 40 65
73.10 New obligations................... 1,685 2,725 2,326
73.20 Total financing disbursements
(gross)......................... -1,663 -2,700 -2,336
74.90 Unpaid obligations, end of year:
Obligated balance: Obligated
balance......................... 40 65 56
87.00 Total financing disbursements
(gross)......................... 1,663 2,700 2,336
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
88.00 Payments from program
account................... -697 -231 -142
88.00 Recoveries from direct loans
conveyed to the direct
loan financing account.... -453 -958 -1,264
88.25 Interest on uninvested funds.. -238 -173 -159
Non-Federal sources:
88.40 Funding fees................ -516 -572 -550
88.40 Cash sale of properties..... -74 -205 -271
88.40 Other collections........... -23 -12 -14
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -2,001 -2,151 -2,400
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -338 549 -64
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4257-0-3-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 28,676 30,230 28,948
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 28,676 30,230 28,948
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 121,310 130,031 138,044
2231 Disbursements of new guaranteed
loans........................... 28,676 30,230 28,948
2232 Guarantees of loans sold to the
public with recourse............ 1,234 820 1,074
2251 Repayments and prepayments........ -20,239 -21,694 -23,031
Adjustments:
2261 Terminations for default that
result in loans receivable.... -84 309 385
2262 Terminations for default that
result in acquisition of
property...................... -737 -1,412 -109
2263 Terminations for default that
result in claim payments...... -214 -240 -269
2264 Other adjustments, net.......... 85
--------- --------- ----------
2290 Outstanding, end of year........ 130,031 138,044 145,042
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 42,289 53,415 56,335
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 37 61 82
2331 Disbursements for guaranteed
loan claims................... 237 309 385
2351 Repayments of loans receivable.. -5 -8 -11
2361 Write-offs of loans receivable.. -208 -280 -353
--------- --------- ----------
2390 Outstanding, end of year...... 61 82 103
---------------------------------------------------------------------------
As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from loan guarantees committed in 1992 and beyond (including
modifications of guaranteed loans that resulted from commitments in any
year). The amounts in this account are a means of financing and are not
included in the budget totals.
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-4257-0-3-704 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 4,004 3,785 3,235 3,300
1206 Non-Federal assets: Receivables,
net............................. 38 61 52 53
Net value of assets related to
post-1991 direct loans
receivable:
1403 Accounts receivable from
foreclosed property........... 14
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 14
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:
1504 Foreclosed property............. 194 415 445 472
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............ 194 415 445 472
------------ -------------- ------------ -------------
1999 Total assets.................... 4,250 4,261 3,732 3,825
LIABILITIES:
2101 Federal liabilities: Accounts
payable......................... 33
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 4,217 4,261 3,732 3,825
------------ -------------- ------------ -------------
2999 Total liabilities............... 4,250 4,261 3,732 3,825
------------ -------------- ------------ -------------
4999 Total liabilities and net position 4,250 4,261 3,732 3,825
-----------------------------------------------------------------------------------------------
<F-dash>
Veterans Housing Benefit Program Fund Liquidating Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4258-0-3-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Capital investment:
00.01 Acquisition of homes............ 608 675 565
00.02 Property improvements........... 24 26 21
00.04 Cash advances................... 12 9 7
00.05 Acquisition of defaulted
guaranteed loans.............. 66 64 62
--------- --------- ----------
00.91 Total capital investment...... 710 774 655
Operating expenses:
01.01 Property management expense..... 39 39 36
01.02 Sales expense................... 52 54 50
01.03 Claims-Individual homes......... 216 203 170
01.04 Other expenses.................. 33 32 31
--------- --------- ----------
01.91 Total operating expenses...... 340 328 287
--------- --------- ----------
02.93 Claims-Individual homes......... 1,050 1,102 942
--------- --------- ----------
10.00 Total obligations (object class
33.0)......................... 1,050 1,102 942
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Fund balance..... 842 192
22.00 New budget authority (gross)...... 1,204 1,174 1,078
22.40 Capital transfer to general fund.. -804 -264 -136
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,242 1,102 942
23.95 New obligations................... -1,050 -1,102 -942
24.90 Unobligated balance available, end
of year: Fund balance........... 192
----------------------------------------------------------------------------
New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 1,204 1,174 1,078
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Fund balance. 76 67 71
73.10 New obligations................... 1,050 1,102 942
73.20 Total outlays (gross)............. -1,058 -1,099 -952
74.90 Unpaid obligations, end of year:
Obligated balance: Fund balance. 67 71 60
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 1,050 1,096 942
[[Page 912]]
86.98 Outlays from permanent balances... 8 3 10
--------- --------- ----------
87.00 Total outlays (gross)........... 1,058 1,099 952
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Federal Sources: Payments from
Direct Loan Financing
Account..................... -873 -929 -870
Non-Federal sources:
88.40 Loan and other repayments... -64 -51 -41
88.40 Loan sale proceeds, net..... -31
88.40 Sale of homes, cash......... -121 -104 -97
88.40 Interest on loans........... -63 -51 -41
88.40 Collection of claims
(veteran indebtedness).... -48 -36 -27
88.40 Other revenue............... -4 -3 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,204 -1,174 -1,078
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -146 -75 -126
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
1996 actual 1997 est. 1998 est.
Enacted/requested:
Budget Authority..................
Outlays........................... -146 -75 -126
Legislative proposal, subject to
PAYGO:
Budget Authority..................
Outlays........................... -127
------------------------------------
Total:
Budget Authority..................
Outlays........................... -146 -75 -253
====================================
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4258-0-3-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 555 449 413
1231 Disbursements: Direct loan
disbursements................... 38 31 28
Repayments:
1251 Repayments and prepayments...... -49 -40 -36
1253 Proceeds from loan asset sales
to the public with recourse... -30 -24 -22
Adjustments:
1261 Capitalized interest............ 5
1262 Discount on loan asset sales to
the public or discounted...... -2 -1 -1
Write-offs for default:
1263 Direct loans.................... -2 -2 -2
1264 Other adjustments, net.......... -66
--------- --------- ----------
1290 Outstanding, end of year........ 449 413 380
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4258-0-3-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 32,345 24,731 18,659
2251 Repayments and prepayments........ -6,793 -5,194 -3,919
Adjustments:
2262 Terminations for default that
result in acquisition of
property...................... -608 -675 -565
2263 Terminations for default that
result in claim payments...... -216 -203 -170
2264 Other adjustments, net.......... 3
--------- --------- ----------
2290 Outstanding, end of year........ 24,731 18,659 14,005
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 13,886 10,476 7,864
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 1,518 1,350 1,206
2331 Disbursements for guaranteed
loan claims................... 258 220 187
2351 Repayments of loans receivable.. -87 -36 -27
2361 Write-offs of loans receivable.. -339 -328 -141
--------- --------- ----------
2390 Outstanding, end of year...... 1,350 1,206 1,225
---------------------------------------------------------------------------
Statement of Operations (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-4258-0-3-704 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 563 869 695 556
0102 Expense........................... -446 -441 -353 -282
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ 117 428 342 274
-----------------------------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-4258-0-3-704 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 914 238 264 137
1207 Non-Federal assets: Advances and
prepayments..................... 1
Net value of assets related to
post-1991 direct loans
receivable:
1402 Interest receivable............. 7 51 41
1403 Accounts receivable from
foreclosed property........... 890 463 203 170
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 890 470 254 211
1706 Net value of assets related to
pre-1992 direct loans receivable
and acquired defaulted
guaranteed loans receivable:
Foreclosed property............. 40
Other Federal assets:
1803 Property, plant and equipment,
net........................... 444 643 655 530
1901 Other assets.................... -84
------------ -------------- ------------ -------------
1999 Total assets.................... 2,204 1,352 1,173 878
LIABILITIES:
2101 Federal liabilities: Accounts
payable......................... 93 293 249 211
2207 Non-Federal liabilities: Other.... 747 76 66 50
------------ -------------- ------------ -------------
2999 Total liabilities............... 840 369 315 261
NET POSITION:
3200 Invested capital.................. 1,284 1,106 941 799
3300 Cumulative results of operations.. 827 169 -83 -183
3500 Future funding requirements....... -747 -292
------------ -------------- ------------ -------------
3999 Total net position.............. 1,364 983 858 616
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,204 1,352 1,173 877
-----------------------------------------------------------------------------------------------
<F-dash>
Veterans Housing Benefit Program Fund Liquidating Account
(Legislative proposals, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4258-4-3-704 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Capital investment:
00.04 Payment to DLFA due to debt
collection.................... 43
--------- --------- ----------
02.93 Claims-Individual Homes......... 43
--------- --------- ----------
10.00 Total obligations (object class
33.0)......................... 43
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 170
22.40 Capital transfer to general fund.. -126
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 44
23.95 New obligations................... -43
----------------------------------------------------------------------------
[[Page 913]]
New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 170
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Fund balance.
73.10 New obligations................... 43
73.20 Total outlays (gross)............. -43
74.90 Unpaid obligations, end of year:
Obligated balance: Fund balance. 2
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 43
86.98 Outlays from permanent balances...
--------- --------- ----------
87.00 Total outlays (gross)........... 43
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Payment from DLFA due to
debt collection........... -127
88.40 Collection of claims
(veteran indebtedness).... -43
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -170
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -127
---------------------------------------------------------------------------
This schedule shows the effects of the Administration's proposal to
repeal restrictions on collection of loan guaranty debts. VA would be
permitted to collect all loan guaranty debts by Federal salary offset or
Federal income tax refund offset.
[Loan Guaranty Program Account]
[(including transfer of funds)]
[For the cost of direct and guaranteed loans, such sums as may be
necessary to carry out the program, as authorized by 38 U.S.C. chapter
37, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended.]
[In addition, for administrative expenses to carry out the direct
and guaranteed loan programs, $33,810,000, which may be transferred to
and merged with the appropriation for ``General operating expenses''.]
(Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1997.)
[Loan Guaranty Direct Loan Financing Account]
[Direct Loan Program Account]
[(including transfer of funds)]
[For the cost of direct loans, such sums as may be necessary to
carry out the program, as authorized by 38 U.S.C. chapter 37, as
amended: Provided, That such costs, including the cost of modifying such
loans, shall be as defined in section 502 of the Congressional Budget
Act of 1974, as amended; Provided further, That during 1997, within the
resources available, not to exceed $300,000 in gross obligations for
direct loans are authorized for specially adapted housing loans.]
[In addition, for administrative expenses to carry out the direct
loan program, $80,000, which may be transferred to and merged with the
appropriation for ``General operating expenses''.] (Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1997.)
<F-dash>
Miscellaneous Veterans Programs Loan Fund Program Account
[Native American Veteran Housing Loan Program Account]
(including transfer of funds)
For administrative expenses to carry out the direct loan program
authorized by 38 U.S.C. chapter 37, subchapter V, as amended, [$205,000]
$515,000, which may be transferred to and merged with the appropriation
for ``General operating expenses''. (Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1997.)
[Vocational Rehabilitation Loans Program Account]
[(including transfer of funds)]
For the cost of direct loans, [$49,000] $44,000, as authorized by
38 U.S.C. chapter 31, as amended: Provided, That such costs, including
the cost of modifying such loans, shall be as defined in section 502 of
the Congressional Budget Act of 1974, as amended: Provided further, That
these funds are available to subsidize gross obligations for the
principal amount of direct loans not to exceed [$2,822,000] $2,278,000.
In addition, for administrative expenses necessary to carry out the
direct loan program, [$377,000] $388,000, which may be transferred to
and merged with the appropriation for ``General operating expenses''.
(Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1997.)
[Education Loan Fund Program Account]
[(including transfer of funds)]
For the cost of direct loans, $1,000, as authorized by 38 U.S.C.
3698, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further, That
these funds are available to subsidize gross obligations for the
principal amount of direct loans not to exceed $3,000.
In addition, for administrative expenses necessary to carry out the
direct loan program, [$195,000] $200,000; which may be transferred to
and merged with the appropriation for ``General operating expenses''.
(Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1997.)
<F-dash>
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0140-0-3-702 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loan subsidy............... 1 1 1
00.09 Administrative expenses........... 1 1 1
--------- --------- ----------
10.00 Total obligations............... 2 2 2
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 4 3 2
22.00 New budget authority (gross)...... 1 1 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 4 3
23.95 New obligations................... -2 -2 -2
24.40 Unobligated balance available, end
of year: Uninvested balance..... 3 2
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 1 1 1
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 2 2 2
73.20 Total outlays (gross)............. -2 -2 -2
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 1 1 1
86.93 Outlays from current balances..... 1 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 2 2 2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1 1 1
90.00 Outlays........................... 1 2 2
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0140-0-3-702 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct loan levels, Vocational
Rehabiliation................... 2 3 3
1150 Direct loan levels, Native
American Housing................ 6 12 14
--------- --------- ----------
1159 Total direct loan levels........ 8 15 17
Direct loan subsidy (in percent):
1320 Voc. Rehab. Loan Subsidy rate..... 2.78 2.03 1.94
[[Page 914]]
1320 Education Loan Subsidy rate....... 0.00 42.94 34.11
1320 Native American Subsidy rate...... 7.72 7.72 7.72
--------- --------- ----------
1329 Weighted average subsidy rate... 6.62 6.78 6.99
Direct loan subsidy budget authority:
1330 Subsidy budget authority, Native
American........................ 1 1 1
--------- --------- ----------
1339 Total subsidy budget authority.. 1 1 1
Direct loan subsidy outlays:
1340 Subsidy outlays, Native American.. 1 1 1
--------- --------- ----------
1349 Total subsidy outlays........... 1 1 1
----------------------------------------------------------------------------
Administrative expense data:
3510 Budget authority.................. 1 1 1
3590 Outlays........................... 1 1 1
---------------------------------------------------------------------------
All information from the Native American Veterans Home Loan Fund,
Vocational Rehabilitation Loan Program and Education Loan Fund is
consolidated in a single housing fund called the Miscellaneous Veterans
Programs Loan Fund.
The Native American Veterans Housing Loan program provides direct
loans to veterans living on trust lands under 38 U.S.C. chapter 37,
section 3761. These loans are available to purchase, construct or
improve homes to be occupied as the veteran's residence. The principal
amount of a loan under this authority is generally limited to $80,000,
except in areas where housing costs are significantly higher than
average costs nationwide. The Native American Veterans Housing Loan
Program is a five-year pilot program beginning in 1993. This submission
assumes the enactment of the proposal to extend the Native American
Program for two additional years through 1999.
The Vocational Rehabilitation Loan Fund provides loans of up to $815
(based on indexed Chapter 31 Subsistence allowance rate) to veterans
enrolled in a program of vocational rehabilitation who are temporarily
in need of additional funds to meet their expenses.
The Education Loan program provides loans of up to $2,500 to
dependents of veterans who are eligible for training benefits under
chapter 35, title 38, U.S.C. and who are without sufficient funds to
meet their education related expenses.
As required by the Federal Credit Reform Act of 1990, this account
records, for these programs, the subsidy costs associated with the
direct loans obligated in 1992 and beyond, as well as the administrative
expenses of these programs. The subsidy amounts are estimated on a
present value basis; the administrative expenses are estimated on a cash
basis.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-0140-0-3-702 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.3 Purchases of goods and services
from Government accounts........ 1 1 1
41.0 Grants, subsidies, and
contributions................... 1 1 1
--------- --------- ----------
99.9 Total obligations............... 2 2 2
---------------------------------------------------------------------------
<F-dash>
Miscellaneous Veterans Programs Loan Fund Direct Loan Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4259-0-3-702 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loans...................... 8 15 17
00.02 Interest on Treasury borrowing.... 2 1 1
--------- --------- ----------
10.00 Total obligations............... 10 16 18
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 1 2
22.00 New financing authority (gross)... 11 16 19
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 12 18 19
23.95 New obligations................... -10 -16 -18
24.40 Unobligated balance available, end
of year: Uninvested balance..... 2
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 8 14 16
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 5 6 6
68.47 Portion applied to debt
reduction..................... -2 -4 -4
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 3 2 2
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 11 16 18
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 1 1 1
73.10 New obligations................... 10 16 18
73.20 Total financing disbursements
(gross)......................... -10 -16 -19
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 1 1
87.00 Total financing disbursements
(gross)......................... 10 16 19
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.00 Federal sources............... -1 -1 -1
Non-Federal sources:
88.40 Non-Federal sources......... -2 -3 -2
88.40 Interest on loans........... -1 -2 -3
88.40 Interest on uninvested funds -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -5 -6 -6
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 6 10 13
90.00 Financing disbursements........... 5 10 13
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4259-0-3-702 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 8 15 17
--------- --------- ----------
1150 Total direct loan obligations... 8 15 17
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 7 13 26
1231 Disbursements: Direct loan
disbursements................... 8 15 17
1251 Repayments: Repayments and
prepayments..................... -3 -3 -2
1264 Write-offs for default: Other
adjustments, net................ 1 1
--------- --------- ----------
1290 Outstanding, end of year........ 13 26 41
---------------------------------------------------------------------------
[[Page 915]]
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-4259-0-3-702 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 4 3 1 1
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 1 13 26 41
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 1 13 26 41
------------ -------------- ------------ -------------
1999 Total assets.................... 5 16 27 42
LIABILITIES:
Federal liabilities:
2101 Accounts payable................
2103 Debt............................ 2 3 2 2
2104 Resources payable to Treasury... 10 23
2203 Non-Federal liabilities: Debt..... 1 13
------------ -------------- ------------ -------------
2999 Total liabilities............... 3 16 12 25
NET POSITION:
3100 Appropriated capital.............. 14 17
------------ -------------- ------------ -------------
3999 Total net position.............. 14 17
------------ -------------- ------------ -------------
4999 Total liabilities and net position 3 16 26 42
-----------------------------------------------------------------------------------------------
This account contains all information on the Native American
Veterans Home Loan Fund, Vocational Rehabilitation Loan Program
Education Loan Fund, and Transitional Housing Financing Account.
As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and beyond. The amounts in
the account are means of financing and are not included in the budget
totals.
<F-dash>
Miscellaneous Veterans Programs Loan Fund Liquidating Account
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-4260-0-3-702 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 3 3 2
--------- --------- ----------
1290 Outstanding, end of year........ 3 2 2
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-4260-0-3-702 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 1
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:
1601 Direct loans, gross............. 3 3 2 2
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -2 -2 -1
1604 Direct loans and interest
receivable, net............... 1 1 1 2
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 1 1 1 2
------------ -------------- ------------ -------------
1999 Total assets.................... 1 2 1 2
NET POSITION:
3100 Appropriated capital.............. 8 1
3300 Cumulative results of operations.. -7 1 1 2
------------ -------------- ------------ -------------
3999 Total net position.............. 1 1 1
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1 2 1 2
-----------------------------------------------------------------------------------------------
This account contains all information on the Vocational
Rehabilitation Loan Program and Education Loan Fund on loans prior to
1992.
As required by the Federal Credit Reform Act of 1990, this account
records all cash flows to and from the Government resulting from direct
loans obligated prior to 1992. All new activity in this program in 1992
and beyond is recorded in corresponding program and financing acounts.
WORKLOAD, AMOUNT LOANED AND REPAID
1996 actual 1997 est. 1998 est.
Number of loans outstanding......... 3,142 2,700 2,340
Average amount per loan outstanding. $831 $849 $855
<F-dash>
Trust Funds
Post-Vietnam Era Veterans Education Account
Unavailable Collections (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8133-0-7-702 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 64 64 64
Receipts:
02.01 Deductions from military pay...... 4 4
02.02 Contributions..................... 12 15 11
--------- --------- ----------
02.99 Total receipts.................. 16 19 11
--------- --------- ----------
04.00 Total: Balances and collections... 80 83 75
Appropriation:
05.01 Post-Vietnam era veterans
education account............... -16 -19 -11
--------- --------- ----------
05.99 Subtotal appropriation............ -16 -19 -11
07.99 Total balance, end of year........ 64 64 64
---------------------------------------------------------------------------
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8133-0-7-702 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Payment to post-Vietnam era
trainees........................ 28 18 14
00.02 Payment to section 901 trainees... 1 1
00.03 Participant disenrollments........ 24 81 28
--------- --------- ----------
10.00 Total obligations............... 53 100 42
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 226 189 108
22.00 New budget authority (gross)...... 16 19 11
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 242 208 108
23.95 New obligations................... -53 -100 -42
24.40 Unobligated balance available, end
of year: Uninvested balance..... 189 108 77
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.27 Appropriation (trust fund,
indefinite)..................... 20 23 11
60.45 Portion precluded from obligation. -4 -4
--------- --------- ----------
63.00 Appropriation (total)........... 16 19 11
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 16 19 11
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation -6 4 5
73.10 New obligations................... 53 100 42
73.20 Total outlays (gross)............. -43 -99 -44
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 4 5 3
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 16 19 11
86.98 Outlays from permanent balances... 27 80 33
--------- --------- ----------
87.00 Total outlays (gross)........... 43 99 44
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 16 19 11
90.00 Outlays........................... 43 99 44
---------------------------------------------------------------------------
This account consists of voluntary contributions by eligible
servicepersons and matching contributions provided by the
[[Page 916]]
Department of Defense. The fund provides educational assistance payments
to participants who entered the service after December 31, 1976, and are
pursuing training under chapter 32, title 38, U.S.C. Section 901 is a
non-contributory program with educational assistance provided by the
Department of Defense. Public Law 99-576, enacted October 28, 1986,
closed the program permanently for new enrollments effective March 31,
1987. The estimated activity in the fund follows:
CONTRIBUTIONS, PARTICIPANTS, DISENROLLMENTS, REFUNDS AND TRAINEES
[In millions of dollars]
1996 actual 1997 est. 1998 est.
Total budget authority.............. $15 $19 $11
Servicepersons.................... $4 $4
Transferred from Department of
Defense (bonus)................. 7 5
Transferred from Department of
Defense (matching).............. 10 8 6
Transferred from Department of
Defense (Section 901)........... 1 1
Transferred from Department of
Defense (Section 903)...........
Total participants (end of year).... 341,439 223,442 164,342
Total contributors (end of year).... 3,611 4,300
Average contribution per contributor
(actual dollars).................... $1,028 $1,028
Number of disenrollments............ 14,150 117,997 59,100
Total refunds....................... $24 $81 $28
Total trainees...................... 14,002 9,154 6,778
Total trainee cost.................. $28 $18 $14
Average cost per trainee (actual
dollars)............................ $1,994 $1,994 $1,994
Section 901 trainees................ 183 144 113
Section 901 trainee cost............ $1 $1
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8133-0-7-702 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
41.0 Grants, subsidies, and
contributions................... 29 19 14
44.0 Refunds........................... 24 81 28
--------- --------- ----------
99.9 Total obligations............... 53 100 42
---------------------------------------------------------------------------
<F-dash>
National Service Life Insurance Fund
Unavailable Collections (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8132-0-7-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 30
Receipts:
02.01 Premium and other receipts........ 236 256 216
02.02 Interest.......................... 1,050 1,002 965
02.03 Payments from general and special
funds........................... 2 2 2
--------- --------- ----------
02.99 Total receipts.................. 1,288 1,260 1,183
--------- --------- ----------
04.00 Total: Balances and collections... 1,288 1,260 1,213
Appropriation:
05.01 National Service Life Insurance
fund............................ -1,288 -1,230 -1,182
07.99 Total balance, end of year........ 30 31
---------------------------------------------------------------------------
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8132-0-7-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Direct:
Operating expenses:
00.01 Death claims.................. 546 591 622
00.02 Disability claims............. 20 20 21
00.03 Matured endowments............ 25 20 13
00.04 Cash surrenders............... 24 15 20
00.05 Dividends..................... 535 509 493
00.06 Interest paid on dividend
credits and deposits........ 55 57 59
00.07 Payment to general operating
expenses.................... 19 20 22
--------- --------- ----------
00.91 Total operating expenses.... 1,224 1,232 1,250
Capital investment:
02.01 Policy loans.................... 132 128 131
--------- --------- ----------
02.93 Total direct obligations........ 1,356 1,360 1,381
Reimbursable program:
03.01 Death claims.................... 245 253 254
03.02 Disability claims............... 9 9 8
03.03 Matured endowments.............. 11 9 6
03.04 Cash surrenders................. 11 7 8
03.05 Dividends....................... 240 218 202
03.06 Interest paid on dividend
credits and deposits.......... 25 24 24
03.07 Payment to general operating
expenses...................... 9 8 9
--------- --------- ----------
03.91 Total reimbursable............ 550 528 511
--------- --------- ----------
10.00 Total obligations............... 1,906 1,888 1,892
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.91 Unobligated balance available,
start of year: U.S. Securities:
Par value....................... 10,854 10,824 10,729
22.00 New budget authority (gross)...... 1,877 1,794 1,727
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 12,731 12,618 12,456
23.95 New obligations................... -1,906 -1,888 -1,892
24.91 Unobligated balance available, end
of year: U.S. Securities: Par
value........................... 10,824 10,729 10,564
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.27 Appropriation (trust fund,
indefinite)..................... 1,288 1,230 1,182
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 589 564 545
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,877 1,794 1,727
----------------------------------------------------------------------------
Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.40 Appropriation................. 10 5 5
72.41 U.S. Securities: Par value.... 1,101 1,183 1,185
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 1,111 1,188 1,190
73.10 New obligations................... 1,906 1,888 1,892
73.20 Total outlays (gross)............. -1,829 -1,887 -1,849
Unpaid obligations, end of year:
Obligated balance:
74.40 Appropriation................. 5 5 5
74.41 U.S. Securities: Par value.... 1,183 1,185 1,228
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 1,188 1,190 1,233
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 589 564 545
86.98 Outlays from permanent balances... 1,240 1,323 1,304
--------- --------- ----------
87.00 Total outlays (gross)........... 1,829 1,887 1,849
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Repayments of loans......... -126 -120 -122
88.40 Optional settlements........ -7 -6 -5
88.40 Net income offsets
adjustments............... -456 -438 -418
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -589 -564 -545
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,288 1,230 1,182
90.00 Outlays........................... 1,240 1,323 1,304
---------------------------------------------------------------------------
Note.--The Department of Veterans Affairs insurance policy loans are
not an extension of Federal credit. Credit schedules previously shown
for this account have been discontinued.
This fund was established in 1940 for the World War II servicemen's
and veterans' insurance program. Over 22 million policies have been
issued under this program. Activity of the fund reflects a rising claim
workload. The trend in the number and amount of policies in force is
shown as follows (dollars in millions):
1995 actual 1996 est. 1997 est.
Number of policies...................... 2,120,348 2,019,328 1,913,028
Insurance in force...................... $19,365 $18,851 $18,299
This fund is operated on a commercial basis to the extent possible.
The income of the fund is derived from premium receipts, interest on
investments, and payments which are made to the fund from the Veterans
insurance and indemnities appropriation.
Assets of the fund, which are largely invested in special Treasury
interest-bearing securities and in policy loans, are
[[Page 917]]
expected to decrease from $12,947 million as of September 30, 1997 to
$12,823 million as of September 30, 1998. The actuarial estimate of
policy obligations as of September 30, 1998, total $12,730 million,
leaving a balance of $93 million for contingency reserves.
The status of the fund, excluding noncash transactions, is as
follows (in millions of dollars):
Status of Funds (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8132-0-7-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Unexpended balance, start of year:
0100 Uninvested balance [unavailable
collections].................... 10 5 35
0101 U.S. Securities: Par value........ 11,954 12,007 11,914
--------- --------- ----------
0199 Total balance, start of year.... 11,964 12,012 11,949
Cash income during the year:
Proprietary receipts:
0220 NSLI fund, Premium and other
receipts...................... 236 256 216
Intragovernmental transactions:
0240 NSLI fund, Interest............. 1,050 1,002 965
0241 NSLI fund, Payments from general
and special funds............. 2 2 2
Offsetting collections:
0289 Offsetting Collections.......... 589 564 545
--------- --------- ----------
0299 Total cash income............... 1,877 1,824 1,728
Cash outgo during year:
0500 National Service Life Insurance
fund............................ -1,829 -1,887 -1,849
Unexpended balance, end of year:
Uninvested balance:
0700 Uninvested balance.............. 5 5 5
0700 Unavailable Collections......... 30 31
0701 U.S. Securities: Par value........ 12,007 11,914 11,792
--------- --------- ----------
0799 Total balance, end of year...... 12,012 11,949 11,828
---------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8132-0-7-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct obligations:
33.0 Investments and loans........... 91 90 93
42.0 Insurance claims and indemnities 616 648 677
43.0 Interest and dividends.......... 610 586 577
--------- --------- ----------
99.0 Subtotal, direct obligations.. 1,317 1,324 1,347
99.0 Reimbursable obligations.......... 589 564 545
--------- --------- ----------
99.9 Total obligations............... 1,906 1,888 1,892
---------------------------------------------------------------------------
<F-dash>
United States Government Life Insurance Fund
Unavailable Collections (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8150-0-7-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............
Receipts:
02.01 Interest and profits on
investments in public debt
securities...................... 7 7 6
Appropriation:
05.01 United States government life
insurance fund.................. -7 -7 -6
07.99 Total balance, end of year........
---------------------------------------------------------------------------
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8150-0-7-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Operating expenses:
00.01 Death claims.................... 8 7 7
00.03 Matured endowments.............. 1 1
00.05 Dividends....................... 6 5 4
00.06 Interest paid on dividend
credits and deposits.......... 1 1 1
--------- --------- ----------
00.91 Total operating expenses...... 16 14 12
--------- --------- ----------
10.00 Total obligations............... 16 14 12
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.91 Unobligated balance available,
start of year: U.S. Securities:
Par value....................... 87 79 72
22.00 New budget authority (gross)...... 9 8 7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 96 87 79
23.95 New obligations................... -16 -14 -12
24.91 Unobligated balance available, end
of year: U.S. Securities: Par
value........................... 79 72 66
----------------------------------------------------------------------------
New budget authority (gross), detail:
60.27 Appropriation (trust fund,
indefinite)..................... 7 7 6
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 2 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 9 8 7
----------------------------------------------------------------------------
Change in unpaid obligations:
72.41 Unpaid obligations, start of year:
Obligated balance: U.S.
Securities: Par value........... 19 20 19
73.10 New obligations................... 16 14 12
73.20 Total outlays (gross)............. -17 -15 -14
74.41 Unpaid obligations, end of year:
Obligated balance: U.S.
Securities: Par value........... 20 19 19
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 2 1 1
86.98 Outlays from permanent balances... 15 14 13
--------- --------- ----------
87.00 Total outlays (gross)........... 17 15 14
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.40 Offsetting collections (cash)
from: Repayments of loans..... -2 -1 -1
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 7 7 6
90.00 Outlays........................... 15 14 12
---------------------------------------------------------------------------
Note.--The Department of Veterans Affairs insurance policy loans are
not an extension of Federal credit. Credit schedules previously shown
for this account have been discontinued.
This fund was established in 1919 to receive premiums and pay claims
on insurance issued under the provisions of the War Risk Insurance Act.
The general decline in the activity of the fund is indicated in the
following table (dollars in millions):
1996 actual 1997 est. 1998 est.
Number of policies.................. 23,130 21,424 19,838
Insurance in force.................. $77 $71 $65
The fund is operated on a commercial basis to the extent possible.
The income of the fund is derived from interest on investments and
payments from the Veterans insurance and indemnities appropriation.
Effective January 1, 1983, premiums were discontinued since reserves
held in the fund were adequate to meet future liabilities of the
program.
Assets of the fund, which are largely invested in interest-bearing
securities and policy loans, are estimated to decrease from $98 million
as of September 30, 1997, to $91 million as of September 30, 1998, as an
increasing number of policies mature through death or disability. The
actuarial evaluation of policy obligations as of September 30, 1998,
totals $89 million, leaving a balance of $2 million for contingency
reserves.
The status of the fund, excluding noncash transactions, is as
follows (in millions of dollars):
Status of Funds (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8150-0-7-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Unexpended balance, start of year:
0101 U.S. Securities: Par value........ 106 99 92
Cash income during the year:
Intragovernmental transactions:
0240 Interest and profits on
investments in public debt
securities, USGLI, VA......... 7 7 6
Offsetting collections:
0289 Offsetting Collections.......... 2 1 1
--------- --------- ----------
[[Page 918]]
0299 Total cash income............... 9 8 7
Cash outgo during year:
0500 United States government life
insurance fund.................. -17 -15 -14
Unexpended balance, end of year:
0701 U.S. Securities: Par value........ 99 92 85
---------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8150-0-7-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
42.0 Insurance claims and indemnities.. 10 9 8
43.0 Interest and dividends............ 6 5 4
--------- --------- ----------
99.9 Total obligations............... 16 14 12
---------------------------------------------------------------------------
<F-dash>
Veterans Special Life Insurance Fund
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8455-0-8-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Operating expenses:
00.01 Death claims.................... 43 49 53
00.02 Cash surrenders................. 5 5 4
00.03 Dividends....................... 105 99 98
00.04 All other....................... 48 58 61
00.05 Payment to general operating
expenses account.............. 4 4 5
--------- --------- ----------
00.91 Total operating expenses...... 205 215 221
01.01 Capital investment................ 24 25 25
--------- --------- ----------
10.00 Total obligations............... 229 240 246
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.91 Unobligated balance available,
start of year: U.S. Securities:
Par value....................... 1,397 1,412 1,415
22.00 New budget authority (gross)...... 244 243 241
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,641 1,655 1,656
23.95 New obligations................... -229 -240 -246
24.91 Unobligated balance available, end
of year: U.S. Securities: Par
value........................... 1,412 1,415 1,410
----------------------------------------------------------------------------
New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 244 243 241
----------------------------------------------------------------------------
Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.90 Fund balance.................. 1 1 1
72.91 U.S. Securities: Par value.... 150 168 179
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 151 169 180
73.10 New obligations................... 229 240 246
73.20 Total outlays (gross)............. -210 -229 -233
Unpaid obligations, end of year:
Obligated balance:
74.90 Fund balance.................. 1 1 1
74.91 U.S. Securities: Par value.... 168 179 192
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 169 180 193
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 75 68 40
86.98 Outlays from permanent balances... 135 161 193
--------- --------- ----------
87.00 Total outlays (gross)........... 210 229 233
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.20 Interest on U.S. securities... -147 -145 -144
Non-Federal sources:
88.40 Interest on loans........... -5 -6 -6
88.40 Insurance premiums earned... -75 -73 -71
88.40 Optional settlements........ -2 -2 -2
88.40 Repayments of loans......... -15 -17 -18
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -244 -243 -241
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -34 -14 -8
---------------------------------------------------------------------------
Note.--The Department of Veterans Affairs insurance policy loans are
not an extension of Federal credit. Credit schedules previously shown
for this account have been discontinued.
This fund finances the payment of claims on life insurance policies
issued before January 3, 1957, to veterans who served in the Armed
Forces subsequent to April 1, 1951. No new policies can be issued.
Policyholders may elect to purchase total disability income coverage
with the payment of additional premiums.
Budget program--
Death claims.--Represents payments to designated beneficiaries.
Cash surrenders.--A policyholder may terminate his or her
insurance by cashing in the policy for its cash value.
Dividends.--Policyholders participate in the distribution of
annual dividends.
All other.--Classified in this category are payments to
policyholders who: (a) hold endowment policies which have matured;
(b) have purchased total disability income coverage and subsequently
become disabled; and (c) are paid interest on dividend credits and
deposits.
The following table reflects the decrease in the number of
policies and the amounts of insurance in force (dollars in
millions):
1996 actual 1997 est. 1998 est.
Number of policies................ 256,330 249,600 242,870
Insurance in force................ $2,825 $2,789 $2,760
Financing.--Payments from this fund are financed primarily from
premium receipts and interest on investments.
Operating results and financial condition.--Favorable mortality
experience on insurance written against this fund has kept death claim
payments well below the amount of premium and interest receipts, thereby
producing an annual increase in the total revenue of the fund. Excess
earnings of the fund are now distributed to the policyholders in the
form of an annual dividend.
Statement of Operations (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-8455-0-8-701 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 228 231 229 225
0102 Expense........................... -226 -223 -229 -225
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ 2 8
-----------------------------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 36-8455-0-8-701 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:
1101 Fund balances with Treasury..... 1 1 1 1
Investments in US securities:
1102 Treasury securities, par...... 1,546 1,580 1,594 1,602
1106 Receivables, net.............. 94 37 37 36
1206 Non-Federal assets: Receivables,
net............................. 3 3
1601 Net value of assets related to
pre-1992 direct loans receivable
and acquired defaulted
guaranteed loans receivable:
Direct loans, gross............. 37 102 109 117
------------ -------------- ------------ -------------
1999 Total assets.................... 1,678 1,720 1,744 1,759
LIABILITIES:
Non-Federal liabilities:
2201 Accounts payable................ 168 187 201 214
2206 Pension and other actuarial
liabilities................... 1,465 1,481 1,491 1,493
2207 Other........................... 20 19 19 18
------------ -------------- ------------ -------------
2999 Total liabilities............... 1,652 1,687 1,711 1,725
NET POSITION:
3100 Appropriated capital.............. 1,397 1,412 1,415 1,410
[[Page 919]]
3200 Invested capital.................. -1,370 -1,378 -1,382 -1,378
------------ -------------- ------------ -------------
3999 Total net position.............. 27 34 33 32
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1,680 1,721 1,744 1,757
-----------------------------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 36-8455-0-8-701 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
33.0 Investments and loans............. 24 25 25
42.0 Insurance claims and indemnities.. 85 100 105
43.0 Interest and dividends............ 120 115 116
--------- --------- ----------
99.9 Total obligations............... 229 240 246
---------------------------------------------------------------------------
<F-dash>